Skip to main content

How Does the Economic Incentive of Block Rewards Align with ‘Honest’ Mining Behavior?

The block reward, which includes a subsidy and transaction fees, is only paid to the miner whose block successfully becomes part of the longest chain. Since honest mining, by immediately broadcasting, maximizes the chance of a block being adopted and extended, it aligns with the miner's self-interest in earning the reward.

Deviating with strategies like selfish mining introduces a risk of the block being orphaned.

How Does the Concept of “Orphan Blocks” Relate to the Longest Chain Rule?
Why Is Immediate Block Broadcasting Essential for ‘Honest’ Mining?
What Is the Concept of ‘Honest’ Mining in a Proof-of-Work Blockchain?
What Is the ‘Longest Chain Rule’ in Blockchain Consensus?